Licensing To Vying Competitors: A Ruling Against Qualcomm

Background of the Qualcomm Suit

Qualcomm Inc (QCOM.O) is an American multinational semiconductor and telecommunications equipment company, which designs and markets wireless telecommunication products and services. The major revenue generation of the company is from chip making and patent licensing businesses. In the 2017, an antitrust lawsuit was filed against QCOM.O by the U.S. Federal Trade Commission (FTC) against Qualcomm on the grounds of monopolization, agreements in restraint of trade, unfair methods of competition and violation of FRAND terms.

Preliminary Ruling by Judge Lucy Koh

The primary issue In Federal Trade Commission v. Qualcomm Incorporated [(5:17-cv-00220) District Court, N.D. California] was whether QCOM.O is liable for anti-competitive behavior when its chip business is combined with its patent licensing practices to maintain its monopoly over smart phones' modem. Although, the case has not been finally decided yet. However, in the